We recently compiled a list of the 10 Hottest Gambling Stocks Of 2025 So Far. In this article, we are going to take a look at where Accel Entertainment, Inc. (NYSE:ACEL) stands against the other hottest gambling stocks.

The battle for betting supremacy is heating up in the US. As one streaming giant makes its move to acquire NFL streaming rights, another is gearing up to be the biggest bookmaker in the country. Sports betting is beginning to shape up as a major revenue generator in the country. Just 7 years ago, the betting volume in the country stood at $400 million. In 2024, a whopping $14.2 billion was spent on sports betting! People have taken a liking to enhance the thrill and excitement of live sports viewing and many companies are taking full advantage of that.

This rise in the use of bets to enhance the viewing experience is an attractive investment opportunity for investors. The gambling sector consists of many small caps that could skyrocket as the industry strengthens its foothold in the country. At the same time, there is a regulatory hurdle that the country still has to cross before putting money in gambling or casino stocks can be considered ‘investment’ in its purest form.

Amid these risks and opportunities, people are bravely backing some companies to become major players in the industry. Some of these stocks are comfortably outperforming the broader market, a trend that is likely to continue in 2025. We therefore decided to look at the stocks that are dominating the sector so far in 2025.

To come up with our list of the 10 hottest gambling stocks of 2025 so far, we only considered stocks with a market cap of at least $100 million that were outperforming the S&P 500.

A customer enjoying a game of pool on a tournament-style pool table at a Gaming Terminal establishment.

Accel Entertainment, Inc. (NYSE:ACEL)

Accel Entertainment, Inc. (NYSE:ACEL) is a distributed gaming operator in the US and generates revenue by installing, operating, and maintaining gaming terminals. The company also operates gambling equipment in non-casino areas such as restaurants and grocery stores. Its stock is up 14.42% so far this year, outperforming the S&P 500’s 4.19% YTD returns.

The company is just coming off an acquisition spree after spending $40 million to acquire LSM Gaming and Toucan Gaming, two firms that own video poker establishments. The stock has shown considerable volatility since these acquisitions late last year. However, shrewd investors are taking each dip as a buying opportunity considering how undervalued the stock is. It trades at a PE ratio of 14.27, which is less than half the average PE of its industry. The price-to-book ratio of 4.71 is also attractive, again less than half of the industry average PB value of 9.89! As the company starts reaping the rewards of its latest acquisitions, the valuation could unravel unlocking shareholder returns.

Overall ACEL ranks 9th on our list of the hottest gambling stocks of 2025 so far. While we acknowledge the potential of ACEL as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for an AI stock that is as promising as ACEL but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

 

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Disclosure: None. This article was originally published at Insider Monkey.